Bitcoin slipped below $103,500 on Tuesday morning, shedding more than 1% in 24 hours as crypto markets reeled from investor caution ahead of the U.S. inflation report and a wave of regulatory pushback in Arizona.
What triggered the dip?
The latest decline follows a brief rally last week, when Bitcoin surged above $105,000 after news of a U.S.–China tariff truce. That momentum evaporated as investors turned cautious ahead of the May 14 release of the Consumer Price Index (CPI)—a key inflation metric that could influence the Federal Reserve’s next interest rate decision.
- Bitcoin fell to $100,700 during the correction before stabilizing around $103,000.
- Nearly $700 million in crypto positions were liquidated, including over $200 million from Bitcoin futures alone.
Crypto analysts say the sell-off is not driven by mass panic but rather short-term repositioning.
Arizona vetoes crypto bills, approves ATM limits
Adding pressure to market sentiment, Arizona Governor Katie Hobbs vetoed two bills that would have increased the state’s direct involvement with crypto:
- SB 1373: Would have created a Digital Assets Strategic Reserve Fund.
- SB 1025: Proposed investing up to 10% of state treasury and pension funds in Bitcoin.
Hobbs also blocked a third bill allowing crypto tax payments, citing risk concerns. However, she approved House Bill 2387, which enforces new regulations on Bitcoin ATMs:
- Daily limits: $2,000/day for new users, $10,500/day after 10 days.
- User protections: Multilingual scam warnings, detailed receipts, and 24/7 support.
- Refund rights: Full reimbursement for fraud victims who report within 30 days.
Arizona currently has 20 active Bitcoin ATMs, according to CoinATMRadar.
What’s next for Bitcoin?
Despite the dip, market fundamentals remain strong:
- Institutional investors, including MicroStrategy, have continued to accumulate. The firm recently purchased 13,390 BTC for $1.34 billion.
- Sentiment could shift quickly if the Fed adopts a dovish tone in its June meeting.
Many analysts still forecast bullish outcomes if CPI data meets expectations.
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